Two Energy Stocks That Beat Exxon, Chevron

BOSTON (TheStreet) --Oil and gas stocks were last week's best performers after homebuilders and REITs on signs the global economic rebound is picking up steam.

The S&P 500 Index's

oil and has subindex rose 10% over only five days, powered by

Schlumberger

(SLB) - Get Report

,

Halliburton

(HAL) - Get Report

and

BJ Services

( BJS).

Here are two less-known large-cap energy stocks.

TheStreet's

stock model forecasts additional gains of 30% for both. Most analysts who cover them have "buy" ratings on the companies.

TransCanada

(TRP) - Get Report

generates power in Canada and owns an extensive network of natural-gas pipelines throughout North America. During the past three years, it has increased revenue 6% annually, on average, and boosted net income 8.9% a year.

Quarter

: Fourth-quarter net income increased 39% to $387 million, and earnings per share climbed 22% to 56 cents. Revenue declined 5.4% to $2.2 billion. The operating margin shrank from 32% to 29%. It has $997 million of cash and $20 billion of debt.

Stock

: TransCanada has advanced 54% during the past year, beating stock-market indices. It has gained 2.2%, annually, since 2007, despite the stock-market rout. It trades at a price-to-book ratio of 1.6, a 90% discount to the oil-and-gas industry average.

Consensus

: Of analysts covering TransCanada, 11, or 69%, advise purchasing its shares and five recommend holding them.

UBS

(UBS) - Get Report

offers a price target of $44.20, leaving a potential 19% return.

RBC

(RY) - Get Report

believes the stock will hit $40.98.

Holders

: During the fourth quarter, six of TransCanada's 10 largest shareholders, including

Bank of America

(BAC) - Get Report

and

BlackRock

(BLK) - Get Report

, purchased additional shares. Four decreased their holdings. The shares pay a 4.4% dividend yield.

Occidental Petroleum

(OXY) - Get Report

is an oil-and-gas explorer in the U.S. It also sells chemicals and vinyls. Its quarterly gross margin hit 56% and its operating margin touched 34%, double the spreads of

Exxon Mobil

(XOM) - Get Report

and

Chevron

(CVX) - Get Report

.

Quarter

: Fourth-quarter profit more than doubled to $938 million, or $1.16, as revenue expanded 13% to $4.5 billion. The net margin rose from 11% to 21%. Occidental holds $1.2 billion of cash and $2.8 billion of debt, equaling a debt-to-equity ratio of 0.1.

Stock

: Occidental has gained 53% during the past year, beating the S&P 500 Index. It sells for a price-to-projected-earnings ratio of 11, a 21% discount to the industry average. Its PEG ratio, a measure of value relative to growth, of 0.4 signifies a bargain.

Consensus

: Of researchers following Occidental, 16, or 73%, rate its stock "buy," five rate it "hold" and one ranks it "sell."

Goldman Sachs

(GS) - Get Report

and

Morgan Stanley

(MS) - Get Report

both project a price target of $107, leaving 24% of potential upside.

Holders

: During the fourth quarter, three of Occidental's 10 largest shareholders, including

Fidelity Investments

and

State Street

(STT) - Get Report

, amplified their bets. Seven sold a portion of their stock. Fidelity now owns 4.3% of the float.

-- Reported by Jake Lynch in Boston.